Double Crown Resources, Inc. (OTC:DDCC) Still Attracts Buyers

Watching a promoted stock keep its ground and even rise further is an exciting affair, much like building a tower of cubes, knowing the collapse is close but not certain when it would happen. This is the case of Double Crown Resources, Inc. (OTC:DDCC, DDCC message board), an entertainment company that climbed four times in two weeks, mostly on robust buying volume.

Two weeks is a long time for a promotion, and this one may be nearing its term. But the DDCC ticker may be supported by an active flow of press releases, touting its upcoming fracking and petrol projects. Let's see how much resources DDCC has for such expensive partnerships and developments:

$2,902 cash

$1.07 million current liabilities

Zero revenues

$37,503 operating loss

The ticker was promoted by moderately expensive email campaigns, priced at $5,000 or $3,000, continuing for a short while. Among the pumpers are the notorious and active Moving Pennies. Currently, DDCC is suitable for promotion, since the fracking industry is in fashion with much promise for cheap hydrocarbons. But it is easily seen that the biggest engine behind the price of DDCC is mere imagination, hype created to attract investors. The biggest risk of selecting a promoted stock is the sharp retreat that often follows when there are no more new emails to draw in buyers.

The energy company seemingly attracted private investment to the tune of $176,000, in exchange for restricted shares. It is still unknown if this money would buy enough energy rights, and it would certainly make only a very small dent into the $1 million working capital deficit. The shares for the private investors are priced at $0.005 as an incentive to buyers, who could choose to sell them if the price is right.

To add to the hype, DDCC is spreading a video of its appearance in business TV program "Insights with Terry Bradshaw". While this could attract more eyeballs, it is also a way to boost the ticker beyond the real potential of the company's energy business.

Energy penny stocks have always been active, playing the expensive oil card. Norstra Energy, Inc. (OTC:NORX) was among the most robust climbers in the last few days, before it settled down 30% on selling as investors decided to cash in the gains from the past days. So, when a stock seems stacked too high, it is best to stay away or really estimate if you could afford a loss when the inevitable correction happens.